- Analytics
- News and Tools
- Market News
- FOMC to hike 25 bps, future policy decisions “adaptive” – ANZ
FOMC to hike 25 bps, future policy decisions “adaptive” – ANZ
Analysts at Australia and New Zealand (ANZ) Banking Group offer their expectations on the US Federal Reserve (Fed) monetary policy decision due to be announced next Wednesday.
Key quotes
“We expect the FOMC will raise rates by 25bp when it meets next week. That would leave the target ceiling for fed funds at 5.25% and effective fed funds in line with the median (and end 2023) dot plot of 5.10%.”
“Our baseline forecast is for one more 25bp rate rise to 5.50%. With respect to the bigger picture, however, the tightening cycle may be nearing its conclusion. We expect future rate decisions to be determined meeting-by-meeting.”
“Our GDP estimates expect the lagged effects of last year’s rate rises to bite more deeply in Q2. We expect consumption and labour market growth to moderate. However, core services inflation ex-shelter may take time to ease.”
“Bank solvency is an issue that the FOMC will factor into its deliberations. It is imperative that inflation is brought under control to protect the value of bank assets. We expect fed funds to hold steady in H2 2023 to squeeze inflation.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
